In today’s global economy, some of the products you buy may have been made in other countries. That outsourcing of labor from the United States comes with both benefits and drawbacks.
Sometimes items cost less, due to outsourcing, which is good for consumers and retailers alike.
“Job outsourcing helps U.S. companies be more competitive in the global marketplace,” according to The Balance financial site. “It allows them to sell to foreign markets with overseas branches. They keep labor costs low by hiring in emerging markets with lower standards of living.”
Unfortunately, a major problem of outsourcing is it can increase the country’s unemployment rate. In fact, U.S. overseas affiliates employ over 14 million workers—double the number of unemployed Americans, according to the Bureau of Economic Analysis (BEA). The top U.S. industries being outsourced are manufacturing, human resources, technology, and call centers, the BEA says.